Colombia's EPM Ituango Approves $380 Million Capitalization for 2,400-Megawatt Hydro Project

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Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--At a May 18 shareholders meeting, EPM Ituango SA ESP (Medellin, Colombia) approved capital funding of about $380 million to finance the initial work on the 2,400-megawatt (MW) Pescadero Ituango hydropower project, which will be built on the Cucuana River in Colombia's Antioquia department.

This capital injection secures the execution of the 2011 planned work on the project, including the construction of the civil camps for the workers and the deviation of the Cucuana River to allow the construction of the dam in 2012.

On March 30, EPM Ituango signed a build, own, operate, maintenance and transfer contract for 50 years with the former developer of the project, Hidroelectrica Ituango SA ESP (Hidroituango) (Medellin). In turn, EPM Ituango will rely on its parent company Empresas Publicas de Medellin (EPM) (Medellin), which holds 97.13% of EPM Ituango shares, for the execution of the project. With the signing of the contract, Hidroituango transferred all previously signed contracts and the ongoing tender processes to EPM Ituango.

The power plant, which is officially named the Pescadero Ituango "Jose Tejada Saenz" hydropower plant, will consist of a 225-meter-high dam with a 79-kilometer-long reservoir between the cities of Briceño and Ituango, and a powerhouse with eight 300-MW Francis hydro turbine-generator sets.

The project will be executed in two phases. In the first phase, EPM Ituango will construct the entire civil infrastructure and will install four of the eight turbines, providing an installed capacity of 1,200 MW. This phase is scheduled to be completed by 2018. In the second phase, the remaining turbines will be installed, reaching 2,400 MW of installed capacity.

At the moment, access roads are under construction, and EPM Ituango expects to select a civil contractor in the next couple of weeks for the construction of the civil camps and the deviation works. During the remainder of this year, the main civil works and the electro-mechanical component of the project will be tendered.

Colombia relies heavily on hydropower generation, with about 70% of its generation coming from hydropower. Currently, there are several hydro projects in different stages of development, with Pescadero-Ituango being the most important. The main hydro projects under construction are:

• the 820-MW Sogamoso hydropower plant (Santander) of Isagen SA ESP (Medellin)
• the 400-MW El Quimbo hydropower plant (Huila) of Emgesa SA ESP (Bogota)
• EPM's 670-MW Porce III hydropower plant in Antioquia

Additionally, HMV Ingenieros Ltda. (Bogota, Colombia) is conducting the permitting process for the construction of the 600-MW Espiritu Santo hydropower plant in Antioquia, while Unidad de Planeacion Minero Energetica (UPME), a government entity dedicated to the planning and development of Colombia's mining and energy sectors, prepares the feasibility studies in order to auction work for the 600-MW Cabrera hydropower plant (Santander), the 432-MW Fonce hydropower plant (Santander) and the 525-MW El Neme hydropower plant (Tolima).

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